Dear Seniors & Colleagues,
Just would like to take your view on the below situation:-
Unclaimed salaries/bonus are lying with us in the company for those employees who all are either absconding or left the job without notice period.
We have held their salaries for 1 month at that time and in their full & final settlement recoveries occured may be because of wage for bulk attendance or for ntice period.
Recoveries are on higher side than the wages to be paid and we have sent letters to these employees to pay us this recovery but they never turned up and amount are lying unclaimed.
Please advise can we recover this amount of recovery from this unclaimed salaries? or else whether we have to deposit this amount to labour welfare fund?
Please advise.
Regards
Ranjeet
From India, New Delhi
11Just would like to take your view on the below situation:-
Unclaimed salaries/bonus are lying with us in the company for those employees who all are either absconding or left the job without notice period.
We have held their salaries for 1 month at that time and in their full & final settlement recoveries occured may be because of wage for bulk attendance or for ntice period.
Recoveries are on higher side than the wages to be paid and we have sent letters to these employees to pay us this recovery but they never turned up and amount are lying unclaimed.
Please advise can we recover this amount of recovery from this unclaimed salaries? or else whether we have to deposit this amount to labour welfare fund?
Please advise.
Regards
Ranjeet
From India, New Delhi
You can set off the recovery past against the unclaimed wages and dues of the employee. But proper process must be followed and full documentation maintained.
From India, Mumbai
From India, Mumbai
Ranjeet,
To the best of my knowledge, there is no specific process defined in any of the acts or rules.
You need to do the following :
1. Send out letters by registered ad to each employee asking them to come and complete their full and final settlement. Specify in the letter that they need to pay you for the notice period not served. Keep ad copies from the post in the file (we generally recommend sticking it on the office copy of the letter)
2. Also specify that if they do not get in touch with you in 15 days, you will adjust the notice pay against the outstanding wages and other dues. (Note : you can not set it off against PF).
3. After 15 days you can put up a memo to your hr head or CEO asking to approve appropriation of then outstanding wages against notice pay. Accounts and hr must make necessary entries against these employees in their records.
4. You may send a notice to the former employees informing them of the balance due from them after adjustment and letting them know that you plan to initiate legal action against them. (You don't actually need to initiate it, but it helps to write that you will)
5. In case there is any money left to be paid to an individual absconding employee after setting off notice pay, you need to intimate them of the same. If they do not come to collect it, you may deposit it in the labour welfare fund at the end of 3 years mandatory waiting period.
From India, Mumbai
To the best of my knowledge, there is no specific process defined in any of the acts or rules.
You need to do the following :
1. Send out letters by registered ad to each employee asking them to come and complete their full and final settlement. Specify in the letter that they need to pay you for the notice period not served. Keep ad copies from the post in the file (we generally recommend sticking it on the office copy of the letter)
2. Also specify that if they do not get in touch with you in 15 days, you will adjust the notice pay against the outstanding wages and other dues. (Note : you can not set it off against PF).
3. After 15 days you can put up a memo to your hr head or CEO asking to approve appropriation of then outstanding wages against notice pay. Accounts and hr must make necessary entries against these employees in their records.
4. You may send a notice to the former employees informing them of the balance due from them after adjustment and letting them know that you plan to initiate legal action against them. (You don't actually need to initiate it, but it helps to write that you will)
5. In case there is any money left to be paid to an individual absconding employee after setting off notice pay, you need to intimate them of the same. If they do not come to collect it, you may deposit it in the labour welfare fund at the end of 3 years mandatory waiting period.
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
SC on recovery of excess wages to employees not permissible in some cases 21.12.2014.pdf
Minimum Wages in Maharashtra for the period January 2018 to June 2018.xls